The number of home buyers engaging in bidding wars with other buyers has dropped more than 45 percent over the last year. Only 11.2 percent of offers written by Redfin agents faced homebuyer competition, the lowest rate in eight years.
This is a radical change from the peak reached in March 2018 when 59 percent of home purchases ended in a bidding war.
San Diego appears to be fighting against the national trend. The local housing market still faces fierce competition with 21.3 percent of Redfin sales seeing a bidding war. This makes San Diego the second most competitive housing market in the U.S. The current volume of bidding wars is up from 19.4 percent in June but down significantly from 61.5 percent in July 2018.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.